PERFORMANCE MANAGEMENT - SOURCE OF COMPETITIVE ADVANTAGE AND ORGANIZATIONAL SUSTAINABILITY

In this scientific approach, human resources performance management is investigated as a source in ensuring the competitive advantage of organizations. Taking into account its implications for the achievement of objectives, we set out to analyze the multitude of elements related to this concept. Thus, the paper explores the foundational components of HR performance management, such as goal setting, continuous feedback, and recognition systems. Additionally, it addresses contemporary challenges in the field, including the integration of artificial intelligence, managing cultural diversity, and balancing high performance with employee well-being. Through this theoretical lens, the paper highlights the importance of adaptive HR practices in supporting sustainable growth and offers insights into future directions for HR’s strategic development. Based on the literature, the main challenges related to performance management are explored, namely: managing cultural and individual differences, the resilience to change and engagement issues and the balancing of organizational goals with employee needs.